See also

MTR.

17311

CONFIDENTIAL

30

Mr Clift, HKGD t, HKCD

HK4173/2

METRO-CAMMELL:

1.

POSSIBLE TRADE WITH TAIWAN

NR.

I am

Thank you for your minute of 19 October. sure that you gave the right advice to Mr Sansome about trading with Taiwan. The Chinese take a relaxed view of trade links with Taiwan generally, exceptions being sales of a military nature and (possibly) other potentially sensitive strategic items. As you know, China and Taiwan now carry on substantial indirect two-way trade, mostly through Hong Kong.

2.

I am surprised that Mr Weedon should have taken such a cautious line. GEC is the classic example of a British company that has successfuly traded with both Taiwan and China. They won a large contract some years ago for the electrification of the Taiwan railways. At the same time Lord Nelson of GEC has been President of the Sino-British Trade Council and has led several British trade missions to China; and more recently the GEC group has won important contracts in China. As you know, they are in the running for further substantial business. As far as we are aware, at no time have the Chinese expressed concern about the Taiwan link.

3.

There are many other examples, such as ICI, Courtaulds, BP etc. In all cases, the key is discretion.

Hyli j

HL Davies

Far Eastern Department

20 October 1981

copied to: Mr Durie, PEP Div, DOT

Mr March, BTC HK

Mr Clark, Peking

Maly

I would like to speak to Mr. Sansome

the phone about this

I explained this to Mr. Janome

CONFIDENTIAL

2011

નિરવ મોદ

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